Is the business good?
How good a business is TGT?
Target Corporation earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
13%
Return on invested capital · cost of capital 9.0% · 4.3 points above what the capital costs: growth creates value
- Operating margin
- 4.5%
Operating margin · Discount Stores median 4.5% · 12 months to Q1 2026
- Cash conversion
- 0.88×
Cash conversion · 0.84× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.15%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 7.0% |
| FY2021 | 8.4% |
| FY2022 | 3.5% |
| FY2023 | 5.3% |
| FY2024 | 5.2% |
| FY2025 | 4.9% |
Details›
- Gross margin12 months to Q1 2026
- 28%
- Operating margin12 months to Q1 2026
- 4.5%
- Net margin12 months to Q1 2026
- 3.2%
- Free cash flow margin
- 2.9%
- Revenue, trailing twelve months
- $106.4B
- Free cash flow, trailing twelve months
- $3.03B
- Net income, trailing twelve months
- $3.45B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Discount Stores
Ranks #5 of 9 by Smart Score